3 reasons to consider debt relief this November

A debt relief servicer could provide the timely help you need this November. Getty Images/iStockphoto

Inflation is on the decline. Interest rates were recently reduced. The unemployment rate is falling. All of these headlines were recently released, giving Americans some welcome economic news after a few years of worrisome developments. But while all of these news items are trending in the right direction, it will still take time for the economic pain of recent years to fully subside.

Interest rates, after all, are only coming down from a 22-year high. And inflation, while almost at the Federal Reserve's target 2% goal, was as high as 9% just two years ago. Interest rates on a range of borrowing products, meanwhile, remain exponentially higher than they were in 2020 and 2021 during the height of the pandemic. 

Understanding this dynamic, then, many Americans may still benefit from pursuing a debt relief option, even with the recent encouraging economic news. Are you one of those who could use the help? Below, we'll break down three reasons why you should consider debt relief this November.

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3 reasons to consider debt relief this November

Not sure if debt relief is the right next step for you? Here are three reasons why it may be:

Credit card interest rates are rising

Credit card interest rates are high and, this week, they broke a new record. Now at 23.37%, if you're one of those with an average of around $8,000 in credit card debt, you're likely struggling to make ends meet. Fortunately, multiple debt relief options can help relieve this burden. Credit card debt forgiveness is a popular alternative. With this option, borrowers can potentially qualify to have 30% to 50% of their existing debt forgiven. You'll need to meet certain criteria but if the alternative is to simply let your current debt and interest compound at today's rising rate, it could be worth exploring this November.

See if you qualify for forgiveness online now.

Rate cut relief will be gradual

The Federal Reserve issued its first rate cut in more than four years in September, reducing the federal funds rate by half a percentage point to a range between 4.75% to 5%. And additional cuts are predicted for when the Fed meets again in November and December. But unlike the September cut, most expect the Fed to cut rates by just 25 basis points in each of its final meetings of 2024. Combined with the September cut that will leave rates a total of just one percentage point lower than they were to start the year. 

And while a step in the right direction, it will be proof that rate cut relief will be gradual and, thus, unlikely to lead to any material benefit for those already stuck with high-interest debt. There's also the possibility that the Fed could pause rate reductions, too, if any new economic data released causes it to reconsider action. So if you're depending on this to help reduce your debt load, you may want to consider debt relief help instead.

The holidays are coming

It's easy to get into debt but particularly now, just weeks away from the winter holiday season. During this time, Americans often spend more than usual and rely on existing credit options to get through the season. In 2022, for example, the average holiday debt rose to $1,550 – the highest level in eight years. And the forecast for this season is even higher, clocking in at $2,100 right now. Understanding this inevitability, it makes sense to start reducing your debt now. And with credit card debt forgiveness, debt management programs and debt consolidation loans viable ways to do so, many borrowers may want to act now before adding even more debt to their balance in the final months of the year.

The bottom line

If you're stuck in debt and are unsure if it's worth pursuing debt relief now, consider the above factors. With credit card interest rates rising, rate cut relief imminent but gradual and a looming holiday season in which overspending is common, this November could be the right time to pursue debt relief. Just be sure to explore all potential options and the ramifications for each to determine which is the best path toward regaining your financial freedom. 

Learn more about your best debt relief options here.